SEC v Kraken

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Montana introduced an amicus curiae in the case of the SEC vs. Kraken, a US-based crypto exchange, criticizing the “regulatory power grab” of the institution. Montana, supported by seven other states, affirms that crypto assets are not automatically securities and that the SEC’s expansive concept of “investment contract” might preempt state legislation.
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Montana Blasts SEC 'Regulatory Power Grab' in Kraken's Case: 'Crypto Assets Are Not Automatically Securities' – Legal Bitcoin News

Montana introduced an amicus curiae in the case of the SEC vs. Kraken, criticizing the "regulatory power grab" attempt of the institution.

news.bitcoin.com

 

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Crypto exchange Kraken has asked a U.S. court to dismiss the claims brought against it by the U.S. Securities and Exchange Commission (SEC) to avoid a "significant reordering" of the U.S. financial regulatory structure, according to court filings submitted in the Northern District of California on Thursday.
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Kraken's latest reply to the SEC's motion to dismiss hinges on the extent to which one can interpret the SEC's jurisdiction by using the Howey test which determines what is and is not a security. It does so by determining whether four criteria are met - an investment of capital, in a common enterprise, with the expectation of profit, driven by the efforts of others.

"The SEC cannot satisfy Howey’s additional requirements that there be investments of money in a common enterprise with a reasonable expectation of profits based on the efforts of others," Kraken's lawyers wrote. "This would gut Howey by significantly expanding the SEC’s jurisdiction to a host of investment activities that were never delegated to the agency. Such a significant reordering of the U.S.’s financial regulatory structure should be debated in Congress, not in the courts."

Judge William H. Orrick is scheduled to hear the matter on June 12.

https://www.coindesk.com/policy/2024/05/10/kraken-asks-court-to-dismiss-sec-claims-to-avoid-significant-reordering-of-us-financial-structure/